Kraken — one of the oldest cryptocurrency exchanges — just acquired a Markets in Financial Instruments Directive (MiFID) license.
Kraken announced that the new license will allow the exchange to offer financial derivatives to crypto traders based out of the European Union (EU). Shannon Kurtas, Kraken Co-GM of Pro & Exchange said:
“As we continue to expand our services across the globe, our focus on the European market remains a top priority. […] This acquisition reflects our confidence in the EU and underscores our commitment to providing a trusted, regulated environment for advanced crypto traders and investors.”
The news follows the introduction of the Markets in Crypto-Assets Regulation (MiCA) cryptocurrency regulatory framework. In October 2024, the European Securities and Markets Authority urged European Union’s regulators to impose stricter cybersecurity requirements on crypto companies.
The details
Kraken explains that obtaining a license constitutes “a significant step” in the cryptocurrency exchange’s expansion strategy. In the coming month, the firm will work to deploy its financial derivative products for European Union customers, allowing them to “gain exposure to a wide selection of assets in a capital-efficient and flexible manner.”
The news follows Kraken losing a case initiated against it by the Australian Securities and Investments Commission (ASIC) in the summer of 2024. The crypto exchange was found to have failed to comply with design and distribution obligations set by the local regulators.
Those are far from the only regulatory conflicts that Kraken found itslef recently embroiled in. In November 2023, the United States Securities and Exchange Commission (SEC) filed a complaint against the cryptocurrency exchange after — claiming that it sold unregistered securities.
This was followed by Kraken pushing for a jury trial in the lawsuit in September 2024. The crypto exchange’s filing reads:
“The Court has rejected the SEC’s invented asset class – “crypto asset securities” – and held that these 11 digital assets are not themselves investment contracts. The SEC has pointed to no transactions where investment contracts were allegedly formed on Kraken.”
